Territorial Disputes: While the 2002
"Declaration on the Conduct of Parties in the South
China Sea" has eased tensions over the Spratly Islands,
it is not the legally binding "code of conduct" sought
by some parties; Malaysia was not party to the Mar 2005
joint accord among the national oil companies of China,
the Philippines, and Vietnam on conducting marine
seismic activities in the Spratly Islands; disputes
continue over deliveries of fresh water to Singapore,
Singapore's land reclamation, bridge construction, and
maritime boundaries in the Johor and Singapore Straits;
in 2008, ICJ awarded sovereignty of Pedra Branca (Pulau
Batu Puteh/Horsburgh Island) to Singapore, and Middle
Rocks to Malaysia, but did not rule on maritime regimes,
boundaries, or disposition of South Ledge; land and
maritime negotiations with Indonesia are ongoing, and
disputed areas include the controversial Tanjung Datu
and Camar Wulan border area in Borneo and the maritime
boundary in the Ambalat oil block in the Celebes Sea;
separatist violence in Thailand's predominantly Muslim
southern provinces prompts measures to close and monitor
border with Malaysia to stem terrorist activities;
Philippines retains a dormant claim to Malaysia's Sabah
State in northern Borneo; per Letters of Exchange signed
in 2009, Malaysia in 2010 ceded two hydrocarbon
concession blocks to Brunei in exchange for Brunei's
sultan dropping claims to the Limbang corridor, which
divides Brunei; piracy remains a problem in the Malacca
Strait.